Kenvue (KVUE) Q4 2025 earnings summary

Executive summary

• Q4 net sales rose 3.2% year-over-year, with organic sales up 1.2% and a 2.1% foreign currency benefit.

• Full year 2025 net sales declined 2.1% year-over-year, with organic sales down 2.2%.

• Q4 diluted EPS was $0.17 (up from $0.15), and adjusted diluted EPS was $0.27 (up from $0.26).

• Full year diluted EPS was $0.76 (up from $0.54), and adjusted diluted EPS was $1.08 (down from $1.14).

• Pending acquisition by Kimberly-Clark expected to close in the second half of 2026.

Financial highlights

• Q4 gross profit margin was flat at 56.5%; adjusted gross profit margin rose to 58.8% from 58.7%.

• Q4 operating income margin increased to 14.2% (adjusted: 19.9%).

• Full year gross profit margin expanded to 58.1% (adjusted: 60.2%).

• Full year operating income margin was 16.0% (adjusted: 21.0%).

• Net cash flows from operating activities were $2.2B; free cash flow was $1.7B.

• Total cash and cash equivalents stood at $1.1B; total debt at $8.5B as of year-end.

Outlook and guidance

• No forward-looking guidance provided due to the pending Kimberly-Clark transaction.